USDA's $37.1M Contract for Canned Pork and Beef Awarded to Lakeside Foods Inc

Contract Overview

Contract Amount: $37,150,659 ($37.2M)

Contractor: Lakeside Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2021-03-15

End Date: 2021-10-31

Contract Duration: 230 days

Daily Burn Rate: $161.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007630/4100022774/PORK CAN-24/24 OZ,BEEF CAN-24/24 OZ

Place of Performance

Location: PLAINVIEW, WABASHA County, MINNESOTA, 55964

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $37.2 million to LAKESIDE FOODS INC for work described as: 2000007630/4100022774/PORK CAN-24/24 OZ,BEEF CAN-24/24 OZ Key points: 1. The contract value of $37.1M for canned meats represents a significant investment in food procurement. 2. Lakeside Foods Inc. secured this award under full and open competition, indicating a competitive bidding process. 3. The contract's duration of 230 days suggests a focused, short-term need for these specific food items. 4. The primary sector is Food & Agriculture, with a specific NAICS code for Animal Slaughtering.

Value Assessment

Rating: fair

The contract's fixed price of $37.1M for 24oz cans of pork and beef needs further benchmarking against similar government food procurement contracts. Without specific unit pricing or volume details, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure goods at the best possible price, although the final price's efficiency requires further analysis.

Public Impact

Ensures availability of essential food supplies for government programs or agencies. Supports the agricultural sector by providing a market for processed meat products. The contract's execution impacts food supply chains and potentially consumer availability of canned goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed unit cost breakdown for precise value assessment.
Potential for price fluctuations in raw materials impacting overall cost-effectiveness.
Limited contract duration may not reflect long-term strategic needs.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Clear identification of the procuring agency (USDA) and contracting activity (AMS).
Specific product types (canned pork and beef) indicate a defined requirement.

Sector Analysis

This contract falls within the Food & Agriculture sector, specifically related to processed meat products. Government spending in this area often supports domestic agriculture and ensures food security. Benchmarks for similar large-scale food procurement contracts would provide further context.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses had the opportunity to participate in the bidding process or if the contract size/scope inherently favored larger entities.

Oversight & Accountability

The Department of Agriculture, through the Agricultural Marketing Service, managed this procurement. Oversight would involve ensuring Lakeside Foods Inc. meets contract specifications, delivery schedules, and quality standards. The 'DEFINITIVE CONTRACT' type suggests a structured agreement with clear terms.

Related Government Programs

Animal (except Poultry) Slaughtering
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Lack of detailed cost breakdown.
Potential for price volatility in raw meat commodities.
No indication of small business participation.
Short contract duration may not reflect long-term strategic needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $37.2 million to LAKESIDE FOODS INC. 2000007630/4100022774/PORK CAN-24/24 OZ,BEEF CAN-24/24 OZ

Who is the contractor on this award?

The obligated recipient is LAKESIDE FOODS INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $37.2 million.

What is the period of performance?

Start: 2021-03-15. End: 2021-10-31.

What is the average cost per can or per pound for the canned pork and beef, and how does it compare to market rates?

The provided data does not include specific per-unit costs or detailed volume breakdowns, making it impossible to calculate an average cost per can or pound. To assess value, this information would need to be compared against current market prices for similar canned meat products procured by government agencies or sold commercially. Without this, a definitive value assessment remains incomplete.

What are the specific quality and safety standards required for these canned meat products, and how are they monitored?

While the contract specifies canned pork and beef, the exact quality and safety standards are not detailed in the provided data. Typically, government food contracts adhere to strict USDA regulations, including inspection and grading. Monitoring likely involves pre-award facility inspections and post-award product testing to ensure compliance with all health, safety, and nutritional requirements.

Could this procurement have been fulfilled more cost-effectively through different contract vehicles or by consolidating needs?

The 'FULL AND OPEN COMPETITION' suggests a competitive process was used, which generally aims for cost-effectiveness. However, without knowing the total volume and specific product requirements, it's difficult to say if alternative vehicles like GSA schedules or larger, longer-term contracts might have yielded better pricing. Consolidating this need with other similar procurements could potentially offer volume discounts.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Animal (except Poultry) Slaughtering

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1421B0224/4100022774

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lakeside Foods, Inc.

Address: 808 HAMILTON ST, MANITOWOC, WI, 54220

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,150,659

Exercised Options: $37,150,659

Current Obligation: $37,150,659

Actual Outlays: $37,150,961

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline